China’s offshore oil and gas firm CNOOC has announced plans to investment CNY85bn ($12.2bn) to CNY95bn ($13.7bn), targeting a net production capacity of 520-530 million barrels of oil equivalent (Mboe) in 2020.
The state-owned firm expects nearly 64% of the production to come from China and the remaining 36% from its overseas assets.
CNOOC’s net production for 2021 and 2022 are estimated to be around 555 million boe and 590 million boe, respectively.
Of the total capital expenditure, the investment on exploration, development, production and others will account for approximately 20%, 58%, 20% and 2% respectively, the firm noted.
CNOOC CEO and president Xu Keqiang said: “In 2020, the Company will steadily increase its oil and gas reserves and production, pursue profitable reserves and production, lay a solid foundation for high-quality development through technology innovations and management enhancement, and create excellent returns for our shareholders.”
CNOOC plans to drill 227 exploration wells in 2020
In addition to drilling 227 exploration wells, the company is planning to acquire nearly 27,000km² 3D seismic data in this year.
Additionally, the firm is planning to commission ten new projects including the Penglai 19-3 oil field block 4 adjustment/Penglai19-9 oil field phase II, Qinhuangdao 33-1 South oil field phase I, Bozhong 19-6 gas field pilot area development project, and Luda 16-3/21-2 joint development project.
Other projects include Nanbao 35-2 oil filed S1 area, Jinzhou 25-1 oil field 6/11 area, Liuhua 29-1 gas field development project and Liuhua 16-2 oil field/20-2 oil field joint development project in offshore China, Liza oil field phase 1 in Guyana and Buzzard oil field phase II in the UK.
Among these projects, the Liza oil field phase 1 in Guyana has already been commissioned ahead of schedule.
CNOOC CFO Xie Weizhi said: “The Company will continue to maintain cost competitiveness, maintain prudent investment decision-making, and ensure the effective implementation of the capital expenditure plan to fully promote the Company to a new phase of high-quality development.”
Last year, CNOOC targeted a net production of 480-490 million boe with nearly 63% of the production to come from China and the remaining 37% from its overseas assets.
